Method and System of Validating Cash Transactions

ABSTRACT

A method and system of validating cash transactions which comprises capturing a unique identifier of a banknote, storing the unique identifier against a user identity of a user; and upon receiving the banknote as tender for payment, checking the unique identifier of the banknote against the user identity, requesting an authorization for release of the banknote for payment, and in response to receiving a successful authorization, transmitting an accept banknote message and in response to a failed authorization, transmitting a decline banknote message.

This invention relates to a method of validating cash transactions, anda cash transaction validation system.

The invention is expected to be advantageously applicable to validatingbanknotes. Accordingly, such applications should particularly, but notexclusively, be borne in mind when considering this specification.

In the specification,

CPT means Cash Processing Terminal;

POS means Point of Sale;

the term “checking” should be broadly interpreted to include a“look-up”.

BACKGROUND OF THE INVENTION

The inventor is aware of the practice of tracking the movement ofbanknotes, similar to how a parcel may be tracked by a courier service.Typically, users are able to track banknotes via user-registeredwebsites. However, in some countries like the United States, the markingof banknotes is illegal if there is intent to render the notes unfit tobe re-issued.

The inventor is also aware of intelligent banknote neutralizationsystems, which systems protect valuables against unauthorized access toits contents by rendering it unusable through the marking of stolen cashwith a degradation agent when an attempted attack on the systems isdetected. For example, as a popular agent, ink is used to stainbanknotes with a permanent dye to flag the banknotes as conspicuous.Such neutralization systems are aimed, amongst others, at providingadditional security of cash-in-transit and consumer payments.

The present invention aims to provide a mechanism of verifying orvalidating the legitimacy of banknotes.

SUMMARY OF THE INVENTION

According to a first aspect of the invention there is provided a methodof validating cash transactions, the method being conducted at a cashvalidation server of a cash transaction validation system, andcomprising the steps of:

capturing a unique identifier of one or more banknotes of a user;

storing the unique identifier of the one or more banknotes against auser identity of the user in a repository connected to the cashvalidation server; and

upon receiving the one or more banknotes as tender for payment at areceiving Cash Processing Terminal (CPT), checking the unique identifierof the one or more banknotes against the user identity stored in therepository, requesting an authorization from the user to release the oneor more banknotes for payment and, in response to receiving a successfulauthorization, transmitting an accept banknote message to the receivingCPT and in response to a failed authorization, transmitting a declinebanknote message to the receiving CPT.

Requesting the authorization from the user may include authenticatingthe user by way of any one or more of: a Personal Identification Number(PIN) and a two-factor authentication method.

The receiving CPT may include a merchant Point of Sale (POS) terminal ofa cashier, for example a mobile merchant POS terminal.

Checking the unique identifier of the one or more banknotes against theuser identity stored in the repository may include electronicallyreceiving the unique identifier at a client-side cash validationsoftware application installed at the merchant POS terminal andtransmitting the unique identifier to a server-side cash validationapplication installed on the cash validation server.

The client-side cash validation application may be integrated with themerchant POS terminal.

Capturing of the unique identifier of the one or more banknotes mayinclude capturing the unique identifier upon withdrawal of the one ormore banknotes at a dispensing CPT. To this end, the method may includeaccessing a storage controller of the dispensing CPT.

Requesting the authorization from the user may include receiving theauthorization from a front-end user terminal having installed thereon auser authentication application in data communication with any one ormore of: the server-side cash validation application installed on thecash validation server, and the merchant POS terminal.

The front-end user terminal may include any one or more of: a mobiledevice wherein the user authentication application comprises a mobiledevice application for example an iOS™ or Mac App Store™ application,and a desktop computer wherein the user authentication applicationcomprises any one or more of: a desktop application and a browser-basedapplication.

The method may include flagging the unique identifier of the one or morebanknotes with a captured or released status. To this end, the capturedor released status may be updated by the user, the merchant or theserver-side cash validation application.

The unique identifier of the one or more banknotes may include, but isnot limited to, a banknote serial number and a barcode.

The dispensing CPT may form part of a local dispensing CPT network, andthe merchant POS may form part of a local merchant POS network.

The local dispensing CPT network may include a cluster of CPT's of thebank. Likewise, the local merchant POS network may include a cluster ofPOS terminals of the merchant.

The cash validation server may be located in a network remote from thelocal dispensing CPT network and the local merchant POS network. In oneembodiment of the invention, the cash validation server and the userrepository connected thereto may be cloud-based.

Capturing of the unique identifier of the one or more banknotes uponwithdrawal may include presenting the user with an option to capture theone or more banknotes at the dispensing CPT.

The dispensing CPT may include, but is not limited to, an AutomaticTeller Machine (ATM).

The method may include tracking the one or more banknotes via the uniqueidentifier. Tracking of the one or more banknotes may include lifecycleanalysis, supply and location intelligence of the one or more banknotes.

The method may include, upon receipt of the authorization from the user,displaying a notification of the user identity and the status of the oneor more banknotes at the merchant POS.

The client-side cash validation application, server-side cash validationapplication, and user authentication application may be in communicationwith each other via a peer-to-peer network.

It should be appreciated that the method provides for the enabling anddisabling of banknotes to control their tender-ability. The enabling anddisabling of the banknotes may provide for the temporary suspension ofthe intrinsic value of banknotes, thereby eliminating the anonymityassociated with cash.

According to another aspect of the invention, there is provided a cashtransaction validation system for conducting the method of validatingcash transactions as hereinbefore described, the system comprising:

a cash validation server connected to a repository and having installedthereon a server-side cash validation application; and

a receiving Cash Processing Terminal (CPT) having installed thereon aclient-side cash validation application, the system operable to

capture a unique identifier of one or more banknotes of a user; storethe unique identifier of the one or more banknotes against a useridentity of the user in the repository; and upon receiving the one ormore banknotes as tender for payment at the receiving CPT, check theunique identifier of the one or more banknotes against the user identitystored in the repository, request an authorization from the user torelease the one or more banknotes for payment and, in response toreceiving a successful authorization, transmit an accept banknotemessage to the receiving CPT and in response to a failed authorization,transmit a decline banknote message to the receiving CPT.

The invention is now described, by way of non-limiting example, withreference to the accompanying diagrammatic drawings.

DRAWINGS

In the drawings,

FIG. 1 illustrates a schematic diagram of a cash transaction validationsystem in accordance with one aspect of the invention.

FIG. 2 shows, schematically, a method of validating cash transactions,the method being implemented by the system of FIG. 1 in accordance withanother aspect of the invention.

FIG. 3 illustrates a schematic diagram of a cash transaction validationsystem in accordance with yet another aspect of the invention.

FIG. 4 shows, schematically, a method of validating cash transactions,the method being implemented by the system of FIG. 3 in accordance withyet another aspect of the invention.

DETAILED DESCRIPTION OF THE INVENTION

With reference to FIG. 1 of the drawings, reference numeral (200)denotes, generally, a cash transaction validation system in accordancewith one embodiment of the invention. The system (200) comprises a cashvalidation server (202) connected to a repository in the form of adatabase (204) having a server-side cash validation software application(206) installed on the cash validation server (202).

To one side, the cash validation server (202) is in data communicationwith a local dispensing Cash Processing Terminal (CPT) network (208)having dispensing CPT's in the form of ATM's (210.1), (210.2) and(210.3). The local dispensing CPT network (208) holds three banknotes atits ATM's (210.1), (210.2) and (210.3), the banknotes having uniqueidentifiers (212.1), (212.2) and (212.3).

To another side, the cash validation server (202) is in datacommunication with a local receiving CPT network (214) which comprisesreceiving CPT's in the form of merchant Point-of-Sale (POS) terminals(216.1) and (216.2). A client-side cash validation software application(218) is installed at the merchant POS terminals (216.1) and (216.2),the client-side cash validation software application (218) beingintegrated with the POS terminals (216.1) and (216.2).

In this embodiment of the invention, the cash transaction validationsystem (200) comprises a front-end user terminal in the form of a mobiledevice (220) of a user (222) having installed thereon a userauthentication application (224) in data communication with the merchantPOS terminals (216.1) and (216.2) and the cash validation server (202).

As will become more apparent with reference to FIG. 2 of the drawings,the cash transaction validation system (200) is operable to capture theunique identifiers of the banknotes (212.1), (212.2) and (212.3) of theuser (222) upon withdrawal of the banknotes by the user (222), store theunique identifiers against a user identity of the user (222) in thedatabase (204), and upon tendering of the banknotes for payment at themerchant POS terminals (216.1) and (216.2), check or look-up the uniqueidentifiers of the banknotes against the user identities stored in thedatabase (204), request an authorization from the user (222) to releasethe banknotes for payment and, in response to receiving a successfulauthorization from the user (222), transmit an accept banknote messageto the receiving CPT, i.e. the merchant POS terminals (216.1) and(216.2), and in response to a failed authorization, transmit a declinebanknote message to the receiving CPT, i.e. the merchant POS terminals(216.1) and (216.2).

With reference to FIG. 2 of the drawings, reference numeral (300)denotes, generally, a method of validating cash transactions inaccordance with another embodiment of the invention, the method beingconducted at the cash transaction validation system (200) of FIG. 1.

At a first step (301), the user 222 withdraws three banknotes from theATM (210.1) that forms part of the local dispensing Cash ProcessingTerminal (CPT) network (208). Upon withdrawal of the banknotes, the useris presented with an option to have the banknotes captured by thesystem.

Next at step (302) and upon the user's (222) electing to capture thebanknotes, the unique identifiers (212.1), (212.2) and (212.3) of thebanknotes of the user (222) are captured and the unique identifiers(212.1), (212.2) and (212.3) are stored against a user identity of theuser (222) in the database (204) connected to the cash validation server(202). In this embodiment of the invention, the unique identifiers(212.1), (212.2) and (212.3) are banknote serial numbers.

At step (304), the banknotes having unique identifiers (212.1), (212.2)and are tendered as payment for goods at the merchant POS terminal(216.2) and the banknote having unique identifier (212.3) is tendered aspayment for goods at the merchant POS terminal (216.1).

Next at step (306), the unique identifiers (212.1), (212.2) and (212.3)are checked against the user identity stored in the database (204) byelectronically receiving the unique identifiers (212.1), (212.2) and(212.3) at the client-side cash validation software application (218)installed at the merchant POS terminals (216.1) and (216.2) and theunique identifiers (212.1), (212.2) and (212.3) are transmitted to theserver-side cash validation application (206) installed on the cashvalidation server (202).

Next at step (308), the user (222) is requested to authorize the releaseof the banknotes having unique identifiers (212.1), (212.2) and (212.3).In one embodiment, the authorization comprises requesting theauthorization from the user (222) by a Personal Identification Number(PIN), whereas in another embodiment, the authorization is requested viatwo-factor authentication. In yet another embodiment, requesting theauthorization from the user (222) comprises receiving the authorizationfrom the front-end user terminal in the form of the mobile device (220)having installed thereon the user authentication application (224) beingin data communication with the server-side cash validation application(206) installed on the cash validation server (202).

At step (310) and upon receipt of successful authorization for therelease of the banknotes having unique identifiers (212.1) and (212.2),the banknotes having unique identifiers (212.1) and (212.2) are flaggedwith a released status and an accept banknote message is transmitted tothe POS terminal (216.2) for acceptance of the banknotes as payment.

At step (312) and in in response to a failed authorization for thebanknote having unique identifier (212.3), the captured status of thebanknote having unique identifier (212.3) remains unchanged and adecline banknote message is transmitted to the POS terminal (216.1) andthe banknote is rejected as payment.

In FIG. 3 of the drawings, reference numeral (7) denotes, generally, acash transaction validation system in accordance with yet another aspectof the invention. The system (7) includes a cash validation server (70)connected to a repository in the form of a database (72) and aserver-side cash validation application (68).

To one side, the cash validation server (70) is in data communicationwith a local dispensing CPT network (58) having dispensing CPT's in theform of ATM's (52.1), (52.2) and (52.3) and a dispensing storagecontroller (60.1). The local dispensing CPT network (58) holds threebanknotes of a user (50) at its ATM's (52.1), (52.2) and (52.3), thebanknotes having unique identifiers in the form of serial numbers(54.1), (54.2) and (54.3).

To another side, the cash validation server (70) is in datacommunication with a local receiving CPT network (64) which includesreceiving CPT's in the form of merchant POS terminals (62.1) and (62.2),and a receiving storage controller (60.2).

In this embodiment of the invention, the cash transaction validationsystem (7) includes a front-end user terminal in the form of a mobiledevice (82) having installed thereon a client-side cash validationapplication in the form of a mobile device application (80), the mobiledevice application (80) having been downloaded from an online store bythe user (50). The cash transaction validation system (7) furtherincludes a front-end terminal in the form of a desktop computer (86)having a client-side cash validation application accessible in the formof a browser-based application (84).

The system (7) is operable to capture the serial numbers (54.1), (54.2),and (54.3); store the serial numbers against the user name in thedatabase (72) connected to the cash validation server (70); add a“captured” or “released” status to the serial numbers (54.1), (54.2),and (54.3); and upon tendering of the banknotes having any one or moreof the serial numbers for payment at the receiving CPT (62.1) or (62.2),take the serial number of the tendered banknote, check its “captured” or“released” status, and in response to a “captured” status, transmit a“decline banknote” message to the receiving CPT (62.1) or (62.2) and inresponse to a “released” status, transmit an “accept banknote” messageto the receiving CPT (62.1) or (62.2).

In FIG. 4 of the drawings, reference numeral (9) denotes, generally, amethod of validating cash transactions in accordance with yet anotheraspect of the invention, the method being conducted at the cashtransaction validation system (7) of FIG. 3.

At a first step (120), the cash validation server (70) accesses theATM's (52.1), (52.2) and (52.3) of the local dispensing CPT network (58)via the dispensing storage controller (60.1) and captures the uniqueidentifiers in the form of banknote serial numbers (54.1), (54.2) and(54.3) of the user (50). In this embodiment, the serial numbers (54.1),(54.2) and (54.3) are captured upon withdrawal of the banknotes and thedispensing CPT's i.e. ATM's (52.1), (52.2) and (52.3) are accessedelectronically via the dispensing storage controller (60.1) by theserver-side cash validation application (68).

Next, at step (122), the serial numbers (54.1), (54.2) and (54.3) arestored against the username (50) in the database repository (72)connected to the server (70).

At step (124), the server-side cash validation application (68) adds orappends to each serial number a “captured” status meaning that thebanknotes have not yet been released by the user (50).

Next, at step (126), the user (50) withdraws the banknotes having serialnumbers (54.1), (54.2) and (54.3) with the aim of tendering thebanknotes for payment at a receiving CPT in the form of the merchant POSterminal (62.1).

Now, at step (128), the user (50) communicates with the cash validationserver (70) via the front-end terminal in the form of the mobile device(82) having installed thereon the client-side cash validationapplication (80) and updates the status of the banknotes having serialnumbers (54.1) and (54.2) from “captured” to “released” at step (130).

Next, at step (132), the banknotes having serial numbers (54.1) and(54.2) are presented or tendered for payment at the merchant POSterminal (62.1). The merchant checks the “captured” or “released” statusof the banknotes by electronically capturing their serial numbers andtransmits the serial numbers (54.1) and (54.2) to the cash validationserver (70) for verification against the statuses stored in therepository (72) connected to the server (70) at step (134).

In this embodiment, the banknotes having serial numbers (54.1) and(54.2) have been “released” by the user (50) at step (130) and thevalidation server (70) accordingly transmits an “accept banknote”message to the merchant POS terminal (62.1) at step (136). Should thenote with serial number (54.3) have been presented for payment, theserver (70) would have transmitted a “decline banknote” to the POSterminal (62.1).

Advantageously, a method and system as hereinbefore described is aimedat removing the anticipated reward of crime, i.e. the stealing ofbanknotes, by foiling the theft and increasing the risk of being caught.

1. A method of validating a cash transaction at a cash validation serverof a cash transaction validation system, comprising: capturing a uniqueidentifier of a banknote of a user; storing the unique identifier of thebanknote against a user identity of the user in a database connected tothe cash validation server; checking the unique identifier of thebanknote against the user identity stored in the database when thebanknote is received as tender for payment at a receiving CashProcessing Terminal (CPT); requesting an authorization from the user torelease the banknote for payment; transmitting an accept banknotemessage to the receiving CPT when a successful authorization is receivedand transmitting a decline banknote message to the receiving CPT when afailed authorization is received.
 2. The method of claim 1, whereinchecking the unique identifier of the banknote against the user identitystored in the database comprises electronically receiving the uniqueidentifier at a client-side cash validation application installed on thereceiving CPT and transmitting the unique identifier to a server-sidecash validation application installed on the cash validation server. 3.(canceled)
 4. The method of claim 1, wherein the receiving CPT comprisesa merchant Point of Sale (POS) terminal.
 5. The method of claim 1,wherein requesting an authorization from the user comprises receivingthe authorization from a front-end user terminal, the front-end userterminal is a mobile device or a desktop computer, a user authenticationapplication is installed on the front-end user terminal, the userauthentication application is a mobile device application when thefront-end user terminal is the mobile device, the user authenticationapplication is a desktop computer application when the front-end userterminal is the desktop computer and the user authentication applicationis in data communication with the merchant POS terminal or theserver-side cash validation application installed on the cash validationserver.
 6. (canceled)
 7. (canceled)
 8. The method of claim 1, whereincapturing a unique identifier of a banknote comprises capturing theunique identifier at a dispensing CPT.
 9. The method of claim 1, whereinthe client-side cash validation application is integrated with themerchant POS terminal.
 10. The method of claim 1, wherein the uniqueidentifier of the banknote comprises a banknote serial number.
 11. Themethod of claim 1, wherein capturing a unique identifier of a banknotecomprises presenting the user with an option to capture the banknote atthe dispensing CPT when the banknote is withdrawn.
 12. The method ofclaim 1, comprising flagging the unique identifier of the banknote witha captured status or a released status.
 13. The method of claim 1,wherein requesting an authorization from the user comprisesauthenticating the user at the merchant POS terminal using a PersonalIdentification Number (PIN) or two-factor authentication.
 14. The methodof claim 1, wherein the dispensing CPT is part of a local dispensing CPTnetwork of a bank, the merchant POS terminal is part of a local merchantPOS network and the cash validation server is located remote from thelocal dispensing CPT network and the local merchant POS network. 15.(canceled)
 16. (canceled)
 17. The method of claim 1, wherein thedispensing CPT comprises an Automatic Teller Machine (ATM) and thecaptured status or the released status of the banknote is updated at theserver-side cash validation application.
 18. (canceled)
 19. The methodof claim 1, comprising tracking the banknote using the uniqueidentifier.
 20. The method of claim 19, wherein tracking the banknotecomprises analyzing a lifecycle of the banknote and providing supply andlocation information about the banknote.
 21. The method of claim 1,comprising displaying a notification of the user identity and thecaptured status or the released status of the banknote at the merchantPOS terminal when the authorization is received from the user. 22.(canceled)
 23. A system of validating a cash transaction, comprising: acash validation server connected to a database, wherein a server-sidecash validation application is installed on the cash validation serverand a receiving Cash Processing Terminal (CPT), wherein a client-sidecash validation application is installed on the receiving CPT andwherein the system of validating the cash transaction is to: capture aunique identifier of a banknote of a user; store the unique identifierof the banknote against a user identity of the user in the database;check the unique identifier of the banknote against the user identitystored in the database when the banknote is received as tender forpayment at the receiving CPT; request an authorization from the user torelease the banknote for payment; transmit an accept banknote message tothe receiving CPT when a successful authorization is received andtransmit a decline banknote message to the receiving CPT when a failedauthorization is received.
 24. The system of claim 23, wherein thereceiving CPT is to receive the unique identifier of the banknote at theclient-side cash validation application and transmit the uniqueidentifier to the server-side cash validation application on the cashvalidation server to check the unique identifier against the useridentity stored in the database.
 25. The system of claim 23, wherein thereceiving CPT comprises a merchant Point of Sale (POS) terminal.
 26. Thesystem of claim 23, comprising a dispensing CPT and a front-end userterminal, wherein the front-end user terminal is a mobile device or adesktop computer, a user authentication application is installed on thefront-end user terminal, the user authentication application is a mobiledevice application when the front-end user terminal is the mobiledevice, the user authentication application is a desktop computerapplication when the front-end user terminal is the desktop computer andthe user authentication application is in data communication with theserver-side cash validation application and the merchant POS terminal.27-30. (canceled)
 31. The system of claim 26, wherein the dispensing CPTis part of a local dispensing CPT network, the merchant POS terminal ispart of a local merchant POS network, the cash validation server islocated remote from the local dispensing CPT network and the localmerchant POS network and the dispensing CPT comprises an AutomaticTeller Machine (ATM). 32-39. (canceled)